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I think he is a vast improvement over his predecessor, who was indeed a Buba toady.

But he is also a neo-liberal, like most central bankers, and is clearly not on the side of workers. And he is bound by his mandate, which is solely price stability.

As a neo-liberal, he will preach to governments about their social spending (not part of his charge), and is given to harangues to labor unions for asking for too much pay (which, funny, is also not part of his charge, but he feels free to engage is such meddling in markets all the while insisting they be free of influence from, say, representatives of workers). You won't see Trichet pursuing full-employment policies on his own - working stiffs don't merit his attention.

But if bankers and their shareholders start losing their shirts when, say a mortgage debt crisis the other side of the planet exploses, you can be sure he will be there to "inject" some liquidity into the market to help them avoid losing some of their already considerable wealth, certainly.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Tue Sep 11th, 2007 at 05:14:32 PM EST
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That all sounds sensible, and I can agree with a lot of it (how could I not), but this doesn't convert into lack of independence from the Bundesbank.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Tue Sep 11th, 2007 at 05:57:03 PM EST
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I don't disagree, but I will point out that the one thing which really hamstrings finance ministries throughout the community is the growth and stability pact, which everyone had to agree to in order to make the Germans (and their tightwad central bankers) happy.

The GSP is the legacy which ensures the Buba's poisoned gift keeps on giving, long after the Buba has (thankfully) gone away.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Tue Sep 11th, 2007 at 06:11:08 PM EST
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